scholarly journals Regional Minimum Wage and the Increase in the Personal Exemption

2014 ◽  
Vol 15 (2) ◽  
pp. 172
Author(s):  
Solihin Makmur Alam
Keyword(s):  
Minimum Wage ◽  
Local Governments ◽  
Income Tax ◽  
Central Government ◽  
Well Being ◽  
Tax Burden ◽  
Almost All

The policy of the Central Government raised the limit on Income Not Taxable (PTKP) to reduce the income tax burden on workers. At the same time, local governments also raise the Regional Minimum Wage (UMR) in 2013 to customize it with the level of inflation and rising prices. Some people think that the policy of the Central Government to improve the welfare of workers by doing adjustments on PTKP is useless because in fact the increase coincided with increases in PTKP UMR. In 2013, almost all local governments set the UMR under PTKP. Thus, the workers who work in these areas did not have to pay income tax. This condition does not apply to workers who work in areas that have the above PTKP UMR. The workers who work in these areas will not receive earnings as a whole. Thus, the income tax has reduced the level of their well -being.

scholarly journals Regional Minimum Wage and the Increase in the Personal Exemption

2014 ◽  
Vol 15 (2) ◽  
pp. 172
Author(s):  
Solihin Makmur Alam
Keyword(s):  
Minimum Wage ◽  
Local Governments ◽  
Income Tax ◽  
Central Government ◽  
Well Being ◽  
Tax Burden ◽  
Almost All

The policy of the Central Government raised the limit on Income Not Taxable (PTKP) to reduce the income tax burden on workers. At the same time, local governments also raise the Regional Minimum Wage (UMR) in 2013 to customize it with the level of inflation and rising prices. Some people think that the policy of the Central Government to improve the welfare of workers by doing adjustments on PTKP is useless because in fact the increase coincided with increases in PTKP UMR. In 2013, almost all local governments set the UMR under PTKP. Thus, the workers who work in these areas did not have to pay income tax. This condition does not apply to workers who work in areas that have the above PTKP UMR. The workers who work in these areas will not receive earnings as a whole. Thus, the income tax has reduced the level of their well -being.

Improving the mechanism of pit collection for community development in the context of decentralization

2021 ◽  
Author(s):  
О. Boiko
Keyword(s):  
Local Governments ◽  
Income Tax ◽  
Well Being ◽  
Local Communities ◽  
The State ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Revenues ◽  
Fiscal Efficiency ◽  
Local Budget

Problem setting. In the analysis of any budget, important markers are åðó revenue indicators, which 80% consist of tax revenues. After all, they give the government and citizens an understanding of how capable the communityis, what amount of expenditures can be made from income, and whether the community has can develop and improve the well-being of its inhabitants. Personal income tax (hereinafter – PIT) covers about 60% of tax revenues of local budgets of Ukraine, so its important role for socio-economic development of local communities and regionsis clear.Recent research and publications analysis. The issue of studyingthe effectiveness of the mechanism of PIT payment and its influence on the process of generation of local government revenues have been in the center of research of domestic scientists such as O. Bandurka, N. Dieieva, I. Liutyi, N. Redinaet al. At the same time, the issue of the effectiveness of PIT collection and its importance for the development of communities in the current conditions of decentralization requires further thorough research.Highlighting previously unsettled parts of the general problem. The role and place of personal income tax in the structure of tax revenues of local budgets have been studies in the paper, the essence of the mechanism of its collectionhas been substantiated, the provision on the effectiveness of tax control over the completeness of its revenues have been analyzedand the reasons for reforming its payment procedure by tax agents have been justified.The purpose of the paper is to study the role and place of PIT in the structure of tax revenues of local budgets, substantiate the essence of the mechanism of its collection, analyze PIT administration procedure, makeproposals for improving the effectivenessof fiscal role of this tax for the community development.Paper main body. One of the most important taxes in the system of direct taxation in Ukraine is the personal income tax. Its share in the structure of tax revenues of the consolidated budget in recent years was about 20% – 23% (90% of which – revenues to local budgets, 10% – revenues of the state budget).The procedure for imposition of this taxis regulated by Section IV of the Tax Code of Ukraine, deducted from the income of citizens at a rate of 18%, which applies to almost all types of income of citizens.In the structure of tax revenues of local budgets, its share is the largest one and averages up to 60% of all tax revenues. During the period of 2015 – 2020, the fiscal efficiency of PIT in the structure of its revenues to local budgets was growing every year. Nominal PIT revenues to local budgets increased from UAH 54,9 billion in 2015 to UAH 177,8 billion in 2020.The key factors influencing the nominal growth of personal income tax revenues are inflation, as well as the annual increase in the minimum wage, changes in tax rates and other innovations in tax reforms of the recent years.Given the significant fiscal efficiency of PIT and its influence on budget generation of the communities, we cannot ignore the problematic aspects of its collection that have a direct impact on tax revenues in the structure of the newly formed amalgamated territorial communities, since success and well-being of local communities depends primarily on the amount of financial resources they own.Thus, according to the Budget Code of Ukraine, PITis distributed among the budgets in the following amounts: 60% goes to the ATC budget, 15% to the regional budget, and 25% to the state budget.It is worthnoting that the current rules of tax and budget legislation contain quite clear obligations of tax agents to pay PITtransfers to those local budgets within which territory businesses are located.Nevertheless, there are constant challenges for local governments and their ability to influence entrepreneurs to pay PIT at the location of legal entities and their units, and not at the place of registration of legal entities.Does this mean that a significant number of tax agents do not comply with the requirements of tax and budget legislation?The Law of Ukraine on Local Self-Government in Ukraine (Article 28) entitles local self-government bodies to monitor the compliance with obligations to pay to the local budget at enterprises and organizations, regardless of the form of their incorporation.Conclusions of the research and prospects for further studies. Given the above, business entities are obliged to pay PIT in accordance with current legislation at the place of their actual location, regardless of the place of registration, and local governments are empowered to control the completeness of taxes coming to the local budget and must actively exercise the initiative to provide additional revenues to community budgets.This will allow receiving PIT revenues to the budget of the community where the enterprises directly carry out their activities in order to develop communities and increase their solvency for the welfare of citizens.

scholarly journals Simulating Corporate Income Tax Reform Proposals with a Dynamic CGE Model

2017 ◽  
Vol 9 (5) ◽  
pp. 20 ◽  
Author(s):  
Keshab Bhattarai ◽  
Jonathan Haughton ◽  
Michael Head ◽  
David G Tuerck
Keyword(s):  
Computable General Equilibrium ◽  
Income Tax ◽  
Well Being ◽  
The United States ◽  
Computable General Equilibrium Model ◽  
Corporate Income Tax ◽  
Policy Makers ◽  
Tax Rate ◽  
Investment Capital ◽  
Almost All

Opinion leaders and policy makers in the United States have turned their focus to the corporate income tax, which now has the highest statutory rate in the developed world. Using a dynamic computable general equilibrium model (the “NCPA-DCGE Model”), we simulate alternative policies for reducing the U.S. corporate income tax.  We find that reductions in the corporate income tax rate result in significant positive impacts on output, investment, capital formation, employment, and household well-being (for almost all deciles). All of the hypothesized reforms also result in a more-streamlined public sector. These results are plausible insofar as the DCGE model from which they are obtained is parameterized by plausible elasticity assumptions, and incorporates the adjustments in prices, output, employment and investment that result from changes in tax policy.

scholarly journals ANALISIS FAKTOR – FAKTOR YANG MENDORONG TINDAKAN TAX EVASION PADA WAJIB PAJAK UMKM DI KECAMATAN MADIDIR KOTA BITUNG

2018 ◽  
Vol 14 (1) ◽  
Author(s):  
Arif A. Palowa ◽  
Grace B. Nangoi ◽  
Natalia Y. T. Gerungai
Keyword(s):  
Tax Evasion ◽  
Local Governments ◽  
Central Government ◽  
Primary Data ◽  
Tax Burden ◽  
Economic Factors ◽  
Qualitative Descriptive ◽  
System Factor ◽  
The Government ◽  
The City

The needs of local governments to the central government in the framework of financing and the level of community compliance to pay taxes in accordance with what is owed is the focus that needs to be discussed. For this reason, this study aims to analyze the factors that encourage tax evasion according to individual taxpayers in Madidir District, Bitung City. This type of research is qualitative descriptive, and the data used is primary data. Data obtained through direct interviews with seven informants in the city of Bitung based on the results of research on the analysis of factors - factors that encourage tax evasion in the form of reducing, removing, and illegal manipulation of tax burden according to taxpayers in Madidir Subdistrict, Bitung City can be concluded that the driving factor society takes action tax evasion is a fare factor that makes the tax burden to be high, economic factors, taxes system factor that too complicated, compliance factors that aim to enrich themselves, the government firmness factor, and distrust of the government bureaucracy.Keywords: tax, factors, tax evasion.

scholarly journals Efektifitas Penyelenggaraan Otonomi Daerah Berbasis Elektronik Terhadap Upaya Pencegahan Tindak Pidana Korupsi (Studi Kasus Pemerintah Daerah Kota Dan Kabupaten Bekasi)

2021 ◽  
Vol 21 (1) ◽  
pp. 39-50
Author(s):  
RAHMAT SAPUTRA
Keyword(s):  
Local Governments ◽  
Industrial Revolution ◽  
Central Government ◽  
Government Agencies ◽  
Literature Study ◽  
Legal Research ◽  
Regional Autonomy ◽  
Technological Developments ◽  
Ict Infrastructure ◽  
Almost All

One of the government's breakthroughs in facing the era of the industrial revolution 4.0 towards the implementation of electronic-based regional autonomy is Presidential Regulation No. 95 of 2018 concerning Electronic-Based Government Systems. Technological developments will create (to create), access (to access), manage (to process), and utilize (to utilize) information precisely and accurately. Information is a very valuable commodity in the era of globalization to be mastered in order to increase the competitiveness of an organization in a sustainable manner. This phenomenon is important to study, because this system is expected to be a solution related to the implementation of effective, efficient, transparent and accountable local governments for efforts to prevent corruption by utilizing the application of this technology. This type of legal research used by researchers is empirical sociological legal research. Empirical sociological legal research that includes research on legal identification (unwritten) and research on legal effectiveness. Data collection was carried out by interview, observation and literature study. This study aims to analyze the effectiveness of the implementation of electronic-based regional autonomy on efforts to prevent corruption (a case study of the Bekasi City and Regency Government). The conclusion is that the effectiveness of the implementation of electronic-based autonomy is not optimal, there are still problems that there is no national integrated SPBE governance, SPBE has not been applied to the implementation of government administration and public services as a whole and optimally, the reach of ICT infrastructure to all regions and to all levels of society not optimal, the limited number of ASN employees who have ICT technical competence. based on the substance of the regulations, it is necessary to regulate the authority of the central government and local governments in managing e-government. Meanwhile, the culture of sharing data and information between government agencies is still low; Information and communication technology (ICT) infrastructure has not reached all agencies, and information security management is weak in almost all government agencies. Based on the application of an electronic-based government system towards the prevention of corruption, one of which is to combat corruption is preventive efforts in addition to repressive measures

scholarly journals Kajian strategis dan prioritas pembangunan pendidikan menengah untuk meningkatkan mutu pendidikan di Pulau Madura

2014 ◽  
Vol 27 (4) ◽  
pp. 211
Author(s):  
Priyono Tri Febrianto ◽  
Sulaiman Sulaiman
Keyword(s):  
Quality Improvement ◽  
Local Governments ◽  
Central Government ◽  
Secondary Data ◽  
Strategic Issues ◽  
School Based ◽  
Lack Of Information ◽  
School Based Management ◽  
School Committees ◽  
Almost All

Efforts in quality improvement and development of education in the era of regional autonomy are not only the responsibility of the central government and provincial governments, but also the responsibility of local governments. Quality improvement and development of education thus become strategic issues for any local government. This study aims to address issues related to: (1) the condition of school facilities and infrastructure (2) the role of school committees which is not optimal; (3) the absence of equitable distribution of teachers; and (4) the lack of Information and Communication Technology/ICT-based learning application in in secondary schools. The research was conducted in four districts, namely Bangkalan, Sampang, Pamekasan and Sumenep. The main theory employed in this study is the School Based Management (SBM) or the so-called School Based Management (SBM). The population was students, parents and teachers. The total number of samples was 250 people comprising 100 students, 100 parents and 50 teachers. The research data were obtained from primary and secondary data. The study yielded a number of key findings. First, 90% of High School (or its equivalent) teachers master the materials taught. This is due to fact that the materials taught are in accordance with the education qualification of the teacher. Secondly, the mismatch found in Madurese high schools was apparently caused by the lack of educators with suitable qualification for the subjects they teach concurrently. Almost all secondary teachers in Madura island require trainings related to the development of competency for mastering the subject materials. The last but not the least, the majority of teachers still apply simple learning methods. Although the method applied by teachers are generally similar, there are significant differences between the favorite schools and the other schools.

scholarly journals thE hEalth poliCy in Child and adolEsCEnt psyChiatry in hungary – a rEviEW of rECEnt dEvElopmEnts

New Medicine ◽  
2017 ◽  
Vol 21 (1) ◽  
pp. 14-20 ◽  
Author(s):  
gábor Kapócs ◽  
péter Balázs
Keyword(s):  
Mental Health ◽  
Health Policy ◽  
Local Governments ◽  
Mental Health Problems ◽  
Central Government ◽  
Pediatric Population ◽  
Well Being ◽  
Child And Adolescent ◽  
World Health ◽  
Public Health Issue

mental health problems affect 10–20% of the pediatric population worldwide, with the same prevalence in both the high-income countries (hiCs) and low-and-middle-income countries (lmiCs). hungary has a relatively high prevalence of psychiatric disorders in children aged 4-17 (15.8%). psychiatric problems in children are an important public health issue in all countries, as the early diagnosis is important not only for the current well-being of the child, but also for their social and economic development throughout their entire lifetime. this paper reviews the relevant health policy acts of the hungarian government that have been released during the previous 15 years. all governmental programs followed the current Who (World health organization) and European union guidelines, indicating the growing influence of the international organizations on the domestic health policy. What is interesting, earlier programs concentrated on local governments and actions, and more recent documents underline the responsibility and role of the state and central government. When analyzing the health policy documents concerning child and adolescent mental health services, a gap between the growing scientific knowledge and its implementation can be seen. the situation of the hungarian psychiatry has been worsening from 2006 in terms of the capacity of both the in- and outpatient care. hungary has yet to fulfill the aims of already existing programs in the day-to-day clinical practice.

Using game theory to stimulate provision of local public facilities

2017 ◽  
Vol 35 (4) ◽  
pp. 368-379 ◽  
Author(s):  
Asle A. Gauteplass ◽  
Arnt O. Hopland
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Central Government ◽  
Content Type ◽  
Theoretical Concepts ◽  
Local Public Services ◽  
Public Facilities ◽  
Selection Framework ◽  
The Individual ◽  
Almost All

Purpose The purpose of this paper is to study how the central government can use well-known game-theoretical concepts in order to stimulate provision of local public facilities. Design/methodology/approach The authors use the classical adverse selection framework to discuss how the central government can use investment transfers as efficiently as possible to stimulate increased provision of local public facilities. Findings The benefits of local public facilities, such as kindergartens, schools, and primary healthcare institutions are greater than what each local government takes into account. Consequently, the central government, which maximizes social welfare in total, wants more local public facilities than the individual local government find optimal to supply. The central government thus would want to stimulate additional provision of local public facilities using contracts where local governments receive a transfer as compensation for increasing their supply. Since local governments differ regarding their efficiency in supplying facilities, the required amount of facilities and the corresponding transfer size should be allowed to vary across local governments. Originality/value Almost all countries are organized with multiple tiers of government, and local governments are important providers of many important welfare services. After labor, facilities are probably the second most important input in production of local public services. This paper offers insights into how the central government can efficiently stimulate the production of local public facilities.

scholarly journals Personal income tax management in Ukraine on the game theory basis

2018 ◽  
Vol 7 (1) ◽  
pp. 41-48
Author(s):  
Olena Tymchenko ◽  
Yuliia Sybirianska ◽  
Yevheniia Polishchuk ◽  
Nataliia Rudyk ◽  
Volodymyr Korotun
Keyword(s):  
Game Theory ◽  
Local Governments ◽  
Income Tax ◽  
Central Government ◽  
Fiscal Decentralization ◽  
The State ◽  
Personal Income ◽  
Personal Income Tax ◽  
Different Types ◽  
The Game Theory

One of the main problems of the fiscal decentralization in Ukraine is the substantiation of the optimal proportion of the personal income tax distribution among the state and different types of local budgets in order to insure the sufficient financial resources for the territorial communities. Since period of the Budget Code adoption, the percentage of the personal income tax paid from salaries to the different levels of budgets has changed three times. However, the methodic of such distribution is not clear. The authors suggest approach of analyzing the logic of the personal income tax distribution on the game theory basis. They consider different ways of making decisions and prove that in all of the analyzed cases the winner was the central government of Ukraine. Such behavior of the central government in making decisions does not meet the goals of the fiscal decentralization reform. The main reason of such situation is that the decisions are made by the state government, but not by the local communities or their representatives. Besides, it is difficult to distribute the expenditures among different types of budgets according to the Governments’ competences. The authors suggest some recommendation of the personal income tax distribution in order to ensure benefits for all participants of the game: communities, local governments and central government. But they conclude that the active influence of people on the behavior of the local governments is the basic premise for the scientific research of the PIT optimal distribution.

scholarly journals Exploring government internet financial reporting in Indonesia

2018 ◽  
Vol 21 (1) ◽  
pp. 115-138
Author(s):  
Pepie Diptyana ◽  
Nur'aini Rokhmania
Keyword(s):  
Local Government ◽  
Population Density ◽  
Financial Reporting ◽  
Local Governments ◽  
Central Government ◽  
Political Competition ◽  
Provincial Government ◽  
Local Dependency ◽  
Government Websites ◽  
Almost All

Government financial reporting as public accountability and transparency is important. Previous research show that almost all local government in Indonesia have their official website, which is active use as presenting news, local potentials, and local government services. Unfortunately, there are still limited local governments which are disclose their financial information as well as budgeting reports and financial statements on their websites. This research aims to explore whether political competition, local asset, local dependency, population density, and information openness award have influenced IFR practice in government in Indonesia. We investigate financial report and budget report as of internet financial reporting (IFR) data of 32 provincial government websites. Indonesia consists of 34 provinces, which are 32 provincial websites consistently accessible and use as sample in this research. The empirical results show that local dependency toward central government and Information Openness Award positively significant influence IFR practices in provincial level in Indonesia. There is no significant influenced of political competition, local asset and population density to IFR in Indonesia Provinces website. Our research contribution is to extend previous research by concerning Information Openness Award as independent variable which influenced to IFR practice in local government.

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